Winning Strategy

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Customers want to know that the company will take care of them not only during the sale, but after the sale, he adds. To that end, it operates its own call centers in California. "We do not outsource to any third parties," he says. "In this way we can always be sure of the best quality."

Products are shipped from seven warehouses in California, Texas and New Jersey within a few hours of receiving the orders, Tong says. The centers are equipped with digital and paperless picking systems using software that it developed.

Newegg.com ships on average between 20,000 and 25,000 orders per day, which equates to about 45,000 packages, Tong says. About 98% of the orders are shipped within 24 hours. It uses Federal Express exclusively for shipping and often can deliver items in advance of the scheduled date, Tong says.

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With its record of success thus far, it should be no surprise that Newegg.com is looking to expand. The company expects to open offices in Europe, Canada and Asia. It recently opened offices in Taiwan and China.

Newegg is beginning to edge into the mainstream consumer electronics market, although it`s not targeting customers of mass market retailers. "Those customers who still like to go to a store and talk to somebody and touch it and feel it, they`re Circuit City`s customer," Tong says. "But for those who already are researching and shopping online--and they`re getting more savvy that way--that`s the type of customer we hope to pull in."

To that end, Newegg on April 20 launched a redesigned site that`s easier to navigate for new customers who might be less technologically sophisticated than its other customers. "We`ve added a lot more content, a lot more information and a lot more functions and features," Tong says.

But Newegg won`t be moving away from its core customer base, Tong says. "Our goal is to still really cater to our core customers," he says. "We certainly don`t want to lose that edge we have of being one of the greatest sites for all these technical parts and components."